With its position on US tech exchange NASDAQ under threat, THQ has confirmed that it is to instigate a reverse stock split.
The process means that every ten shares in the publisher will be converted into a single share, effectively raising the value of said shares.
The move will reduce the number of THQ shares from 68.5m to around 6.9m. The goal is to raise THQ's per-share price to over $1 – a value needed to comply with NASDAQ regulations.
This is scheduled to occur on July 9th.
The purpose of the reverse stock split is to raise the per share trading price of THQ's common stock to regain compliance with the $1.00 per share minimum bid price requirement for continued listing of THQ's common stock on the NASDAQ Global Select Market,” a publisher statement read.
As previously disclosed, in order to regain compliance with NASDAQ's minimum bid price requirement, the common stock must have a minimum closing bid price of $1.00 per share for a minimum of 10 consecutive trading days.
There can be no assurance that the reverse stock split will have the desired effect of raising the closing bid price of THQ's common stock to above $1.00 per share to meet this requirement.”
THQ was first warned of a possible NASDAQ relisting back in January. It was given a 180-day deadline to comply with the requirements.